Lemhi Ventures
ActiveOverview
Lemhi Ventures is a venture capital firm founded in 2006, headquartered in Wayzata, Minnesota, that invests in healthcare services companies. It focuses on disruptive innovation, technology, and data-driven solutions to improve health outcomes, reduce costs, and increase consumer control in healthcare. The firm acts as working investors with operational experience, targeting entrepreneurs at seed, Series A, Series B, and growth equity stages, and has achieved exits through acquisitions of portfolio companies.
History
Lemhi Ventures was founded in 2006 to leverage venture capital for change in healthcare services. It managed Funds I and II, investing in fifteen healthcare services companies emphasizing technology and data. Key exits include DestinationRx acquired by Connecture in 2013, TransEngen assets acquired by VirMedica in 2014, PlanSource by Vista Equity Partners in 2019, and Digital Reasoning by Smarsh in 2020.
Notable Products
- Fund I - Investment fund focused on early healthcare services companies using disruptive innovation and technology.
- Fund II - Follow-on fund investing in fifteen healthcare services firms targeting better outcomes and cost reduction.
- DestinationRx - Pioneer in drug comparison and purchasing tools for government, health plans, PBMs, and consumers; acquired by Connecture in 2013.
- PlanSource - Cloud-based platform for benefits shopping, enrollment, billing, compliance, and administration; acquired by Vista Equity Partners in 2019.
- Digital Reasoning - Cognitive computing software for human communications analysis in financial services, government, and healthcare; acquired by Smarsh in 2020.
Reputation
Lemhi Ventures is recognized among healthcare investors for its hands-on approach and success in exits like PlanSource and Digital Reasoning. Professionals note its focus on operational involvement and backing of innovative entrepreneurs in healthcare services. Specific employee metrics and AUM are not publicly disclosed, limiting broader visibility into scale.